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Stock Market Today: S&P 500 snaps five month win streak as losses pile up in April

AuthorYasin Ebrahim
Published 04/29/2024, 07:45 PM
Updated 04/30/2024, 04:09 PM
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Investing.com--  The S&P 500 fell Tuesday, snapping a five-month winning streak as data pointing to wage pressure stoked inflation concerns just as the Federal Reserve gets its two-meeting underway.

At 16:00 ET (20:00 GMT), Dow Jones Industrial Average fell 570 points, or 1.1%, S&P 500 dropped 1.5%, while NASDAQ Composite fell 2%. The S&P 500 posted a 3% loss for the month. 

Sticky inflation weighs on rate cut hopes 

U.S. labor costs increased more than expected in the first quarter, driven by a rising wages and benefits, stoking fresh concerns about inflation just as investor bets on Fed rate cuts continue to cool.

The Employment Cost Index increased 1.2% last quarter after rising by an unrevised 0.9% in the fourth quarter, while labor costs increased 4.2% on a year-on-year basis.

The report followed data last week that showed price pressures heating up in the first quarter.

The Federal Reserve kicked off its  two-day policy-setting meeting  Tuesday, and is widely expected to keep its benchmark interest rate unchanged in the current 5.25%-5.50% range, where it has been since July.

Fed Chair Jerome Powell remarks that will follow the monetary policy statement is likely to take on added importance as investors are eager for clues on whether the Fed chief is likely to adopt the market’s less dovish view on the rate outlook.

"The FOMC is likely to stick to its message that higher inflation has delayed cuts at its May meeting," Goldman Sachs said in a recent note.

Investors have largely priced out the likelihood of rate cuts this summer, with September now seen as the favorite month for the Fed to start a rate-cutting cycle, according to the CME Fedwatch tool. 

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Eli Lilly, 3M, Coca-Cola deliver earnings beat, but McDonald's earnings misses

Eli Lilly (NYSE:LLY) stock rose 6% after after the pharmaceutical giant reported better-than-expected earnings for its first quarter, and hiked its full-year guidance on strong sales of its blockbuster diabetes drug Mounjaro and newly launched weight loss treatment Zepbound.

3M Company (NYSE:MMM) stock rose nearly 5% after the industrial conglomerate topped analysts’ expectations for its first quarter, adding that it expects its dividend payout ratio to be approximately 40% of adjusted free cash flow. 

Coca-Cola (NYSE:KO) was lower despite the beverage giant reporting quarterly earnings and revenue that beat expectations, and raising its full-year outlook for organic revenue. 

McDonald’s Corporation (NYSE:MCD) slipped after its reporting weaker than expected Q1 earnings as  same-store sales missed analyst estimates as calls to boycott on the chain amid the ongoing Middle East war weighed on growth.

Paramount falls after CEO exits; HSBC in multi-year highs as CEO departs; Paypal shines on earnings stage

Paramount Global (NASDAQ:PARA) fell 7% after announcing that Chief Executive Bob Bakish has stepped down amid ongoing talks over a potential tie-up talks with David Ellison's Skydance Media.

HSBC (NYSE:HSBC) unveiled a stronger-than-expected Q1 profit and said that Chief Executive Noel Quinn would retire after nearly five years in the role. It shares rose more than 3%, to remain on course for its highest close since May 2019. 

PayPal (NASDAQ:PYPL) stock rose more than 2% after the payments system operator posted a better-than-anticipated 14% year-on-year uptick in first-quarter total payment volume to $403.9 billion.

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Bitcoin dips below $60K 

Bitcoin (BitfinexUSD) fell below $60,000, taking loss to more than 14% on the month as the crypto looks set for largest monthly loss since November 2022 amid a slew of fund outflows. 

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

permabears are excited..
That number showed that now the inflation is moving from goods to wages. All economist would say this is bad. Because wage inflation is like adding fuel to inflation fire. If it wasn't an election year, FED would be raising rates Wednesday. All the rate cut BS is a sham and merely wishful thinking...
Maybe its just transitory as they said 2 years ago 😂😂😂😂😂
Inflation rate did drop from 9.1% in mid-2022.
inflation isn't sticky... it's dug in
Now that it moved to wages it will be even worse than ever. Because wage inflation will lead to more and more inflation... FED would need to raise rates again but I am sure they are not brave enough to do so. Probably no rates raise but a very hawkish tone during the press conference
Means the same thing.
AI 💩hit the fan
Stocks should be down 5K back before all this rate cut deception started.
All this rate cut sham is wishful thinking, a fairy tale that's coming from commentators and analysts. Now the FED has a conundrum : raise or higher for longer. I wouldn't expect any rate cut before next year earliest
More deficit spending should resolve all this inflation...lol.. Problem is that's the only solution the FED has...keep spending and hope all the problems go away. This is going to get very ugly people so I hope you have Gold!
Reason Powell, Biden and the FED are stupid humans to live with
Powell was made Fed Chair by Trump, the stupidest of all.
Stocks, bonds, commodities, cryptos: everything is bleeding right now. Plenty of shorting opportunities for all the villains of the world.
Robin. It's not villainous to short. It's mathematics. Markets go up and down. Why keep your profits to 50% of the trading. Broaden your horizons Junior.
I say this was a worst & bad month for the U.S. stock market, with the worst month of this year, but they will surely rebound in May, and more rally this summer & beyond. I say that just 1 interest rate cut for this year will be a good idea. I hope Jerome Powell won't make bigger hawkish sound statements.
rate cuts will equal higher inflation. not going to happen anytime soon, maybe not even this year at all
LOL
Wishful thinking. The biggest risk when fighting inflation is when inflation moves to wages. Good for workers but not for the economy. Wages raising means more consumption and we're back in the cycle of raising inflation....
most competent technical analysts were expecting a correction in April and a rebound in May, and a possible new high.
what's the matter Tim, you don't know how to edo an ERIC search. maybe you should do a different kind of investing.
Half the time TA doesn't work. In this case, fundamentals will correct the markets, over next several years we're headed down then sideways for long time
Well that's a really snarky remark. Everybody's at a different level in their education. I've never heard of ERIC and I'm happy to have learned about a new resource. Instead of kicking people down we should help lift them up. Unless they are @ssholes or obviously lazy.
Tomorrow's heading: S&P500 recovers losses as consumer confidence and PMIs dip rising hopes for more rate cuts. BTW, markets are already pricing in just 1 rate cut this year. Whatever Powell says tomorrow, as long as not less that 1 cut, stocks will rise. As he will say something generic as 'we will be data dependant blah blah so far not so good but blah bumpy path but cuts are underway'. The worst is priced in already for this week, as of today.
we've seen a mismanaged economy, incompetent leadership and deviate corrupt behavior with Trump.now, this democratic administration is trying to clean up the mess.
you all seem to forget the kind of political carnage Trump created and the horrible economic conditions that Biden inherited from trump.
Biden inherited economic conditions from Trumpf and made them much, much worse.
Yeah no. This current administration has done nothing good and every possible measure to make things worse. Trumps term was over right at the same time the covid crisis hit. There is no measure of how the situation could have recovered under Trump because it was imediately handed off to the actual destructors. Under Biden we have seen an overly liberal imigration process that is only causing problems, race and gender identity politics leading to race wars, riots, and freak shows, unthinkable levels of spending, uncontrollable spending, taxpayer money spent on foreign wars and for the wrong reasons in an attempt to broaden the conflicts, a further declining eduction system, free money in stimulus checks, the list goes on and the maistream media in whatever form it comes in omits the truth and only tells a false narative.
Well what happened today? Did someone figure out that with the market having purportedly priced in 10 rate cuts, 2% inflation, 20 years of 6% GDP growth, and 10 years of 30% EPS growth, none of this was in the cards? I'm sure savvy investors will change their minds tomorrow, and today's loss will be whisked out of the system as they snap up beaten down shares.
The market didn't price in those things. you can't critizise based on facts so you gotten make up bs to whine about?
Well in Mitchells defense he is exagerating the numbers sarcastically, and yes the market had been pricing in these things but as new information continues to be released the hopes for what has been baked in are waning and slowly washing away. However I do gotta say its kind of an uptick hearing Mitchell speak in this manner because for more than 4 years all he does everday is throw crap at the wall writing little reduntant bitchings everytime the market goes up. Show me a chart of any asset that doesn't go up and down, up and down. In relation to the volatility of our stock market, pull up a chart of any market around the world. They all do they same thing. Prices move sometimes for no fundamental reason. They always have and probably always will. Some assets are less volatile than others but all of this is, yes very predictable. Plus these markets are futures outlook mechanism so they will always outpace the intrinsic value. Why upset when the market rises, even the little guy can make money too.
Powell and Yellen need to be jettisoned and the Fed needs to be ended.
'Ended' and then replace with what?
Same story again? Every other week just bring it up again and make it the cause of market fall
Agree fully.
LOL. I think they have 5-10 headings they just swap they every day.
you left out open border
No freedom of speech here.
True, investing.com is helping market manipulation
Pot stocks doing well today, IIRP pays 7. 38% and NLCP 8.66%
But the other choice is the retrumplicans' drowsy and gassy Don the Con, the cowardly draft-dodger with foot spur and small hands.
Schedule 3 means a prescription is needed, effectively banning recreational in states that made it legal. Biden never supported recreational legalization.
@Casador: Reclassifying mj from Schedule 1 to 3 makes it LESS restrictive than what it is now.
Rich people care about inflation and the stock market; poor people care about unemployment and interest rates.
No, they're all linked
Whether people care or not about them and whether they're linked or not are two separate topics.
The US government needs to stop emitting dollars because this is what is generating inflation. The US government must increase taxes because the USDT spends every month very billions more than it collects.
US money supply went up every year under Trump and has gone up every year under Biden.
US government should stop printing dollars like it is toilet paper if they are serious about cutting inflation.
* correction: ... and has gone DOWN every year under Biden.
The inflationary numbers are not surprising considering the continued gains made by organized labor, which is being championed by the White House and Democrats, as well as increases to minimum wages in places like California, both which take a while to show up in the stats. Both the misguided policies, and over the top spending by Biden and the Democrats continue to fuel inflation. People need to look to Argentina to see the solution, and it's a simple one, just not in the politician's and bureaucrat's best interest.
There have been massive amounts of business closures and taxpayers moving out of California due to their attempts at bringing in communist policies to the state. With capitalism they have to build walls to keep people out, the communism they have to build walls to keep people in.
yeah Argentina and their hyperinflation lol
There were 3 increases to the minimum wage in 2007.... and the great financial crisis of 2008 followed shortly thereafter. Truly there were multiple factors involved, but raising labor costs simply raises layoffs. The best boon to the working class is tax cuts. Note in America, the tax rate for dividends and capital gains is flat around 5-10%, whereas the income tax rates are significantly higher, by the time one includes state income tax, social security wage base, medicare rates, in addition to federal income tax. The entire system has poor paying taxes to government so rich can pay lower rates overall and receive handouts. A flat tax rate with no loopholes or special tax breaks is the only fair way
Imagine being a democrat and having to pretend to support Biden, who has started 3 wars, 20% inflation in 3 years, supports mutilation of children, and whose own daughter wrote in her diary that he molested her in the shower as a child. All because you are upset that Trump made mean tweets and lowered your tax.
Biden wants inflation, so we can pay more taxes on inflated wages and investments. More tax revenues needed to pay for wars, etc.
And we will be paying a lot more in taxes if Biden wins the election. It will be total anarchy.
Inflation is a tax
Short sell in May!
Let's make bears crazy and buy in May? :) Enough selling in April already. Let's start from 30th April!
Natty Gas hit the ball out of the park with her comment. No one expects anything other than gloom and doom from Jerome Powell.
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